BUILDING

CUSTOME
R
LOYALTY
TEAM 1
MARKETING MANAGEMENT
 MEMBERS OF TEAM 1

1. IVAN WIRYAWAN
2. AZIZAH
3. NENG RATNA MARIANI
4. RUBEN LAURENS MANURUNG
5. SIGIT PAMUNGKAS
6. VILLIA NIKMATUL KHASANAH
7. RIKA MARYANI
 EMIRATES
25 October
1985

Dubai to Karachi

Sheikh Mohammed bin

Rashid al Maktoum
Minister of Defense of the United
Arab Emirates
160
destinations in
85 countries Dubai to Mumbai
across six
continents
270 aircraft
PRODUCT
 HIGHLIGHT

How a company should How companies manage

balance its acquisition and customer relationships
retention efforts

How a company can manage How a company should

customer satisfaction and manage customer lifetime
loyalty value
Managing Customer Acquisition and Retention

The customer Balancing

acquisition funnel customer
acquisition and
customer retention
 The 5-A Customer Acquisition Funnel

Awareness Appeal Act Advocate

Ask

The awareness
The appeal phase During the ask The act phase The advocate
phase is the
reflects the fact that phase, customers marks a transition phase reflects
gateway to
although customers seek additional from information customers’
customers’
might become information about gathering and reactions
interaction with the
aware of multiple the offerings in
company’s offering. evaluation following their
offerings their consider- ation
consumption
set.
experience
BALANCING CUSTOMER ACQUISITION AND
CUSTOMER RETENTION
The customer acquisition funnel also emphasizes how
important it is not just to attract new customers but also to
retain and cultivate existing ones. Research on customer
retention suggests that acquiring new customers can cost
several as much as satisfying and retaining current ones.

One study identified more than 800 critical factors that cause
customers switch services. Among the key factors are pricing issues
(high price, price increases, unfair pricing, deceptive pricing);
convenience issues (location/ hours, wait time for appointment and
service); core service failure (service mistakes, billing errors,
service catastrophes); service encounter failures (uncaring, impolite,
unresponsive, unknowledgeable); response to service failure
(negative response, no response, reluctant response); competition
(found better service); ethical problems (cheat, hard sell, unsafe,
conflict of interest); involuntary switching (customer moved,
provider closed).
 Managing Customer Satisfaction and Loyalty

01 02 03 04

Understanding Product and Measuring Building

customer service quality customer Customer
satisfaction as a driver of a satisfaction loyalty
customer
satisfaction
 UNDERSTANDING CUSTOMER SATISFACTION

Customer satisfaction is one of the most crucial parts of every business’ success. Business strategies that
revolve around customer satisfaction tend to bring about better results compared to the ones that don’t.

Customer satisfaction helps retain current customers as well as new ones. Especially in today’s competitive
market scenarios, the power of driving a business to success or failure significantly lies in the hands of
customers. As a result, dissatisfied customers become a great retention risk. Losing customers due to a lack
of customer satisfaction impacts your brand image negatively.
 Marketing strategies to increase customer satisfaction

2. Invest in PPC 3. Invest in

1. Ask for 4. Develop user-
and social media personalized
feedback through friendly websites
advertisements to email marketing
different social
recruit the right
media channels
employees
 1
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1. How do you communicate and demonstrate customer satisfaction drivers to your target market?

Communicating and demonstrating these drivers to your target market is essential for building trust, loyalty, and
retention.

2. How to Identify Your Customer Satisfaction Drivers ?

To identify your customer satisfaction drivers, you need to conduct some research on your target market. You can use
various methods, such as surveys, interviews, focus groups, reviews, or feedback forms.

3. How to Prioritize Your Customer Satisfaction Drivers ?

Once you have identified your customer satisfaction drivers, you need to prioritize them according to their impact on your
customer satisfaction and loyalty.

4. How to Communicate Your Customer Satisfaction Drivers ?

Communicate them to your target market through your marketing channels. You can use different strategies, such as
storytelling, testimonials, case studies, demonstrations, comparisons, or guarantees. The key is to use clear, concise, and
compelling language that showcases the benefits and value of your products or services. You should also use visual
elements, such as images, videos, infographics, or icons, to support your message and appeal to your customers'
emotions.
 Measuring Customer Satisfaction

Customer Satisfaction Benefits of Measuring

Measurement Methods Customer Satisfaction

Increased Reduced Gaining a

Customer Complaints
Ex-customer Ghost customer customer Increased competitive
satisfaction and analysis shopping satisfaction service sales
advantage
surveys suggestions
and loyalty costs
 Building Customer Loyalty

The Importance of Building Strategies for Building

Customer Loyalty Customer Loyalty

- Customer loyalty is key - Engage closely with

- Loyal customers are more likely to buy
customers
more, spend more, and recommend the
company to others
- Develop a loyalty program
- Building customer loyalty is cheaper - Build a brand community
than acquiring new customers
 Managing Customer Relationship

Customization
1 3 Managing customer word
of mouth

Customer empowerment
2 4 Dealing with customer
complaints
 Customization 1
CRM describes a company-wide business strategy Include customer-interface
departments as well as other departments. Implementation of CRM has
included different customer options, mainly IT program software and the
loyalty program.

CRM customization is a process adding or modifying Customer

Relationship Management (CRM) features to fit how the business
strategy to achieve the target value
Why
Customization On 1
CRM is Important

1.Productivity Department Increased

2.More Effective Allocation of Task

3.Flexibilty
 Customer
Empowerment 2
What Is, Why It & How to Achieve It

Customer empowerment is when you give your customers :

➢ the information they need
➢ the tools that they need to make a decision.

By giving them resources and options, you’re providing them with a

much better buying experience and allowing them to determine the
kind of experience they’d want to have with your brand.
 Managing
3 customer word of
mouth

The strongest influence on consumer choice remains recommendations from friends and relatives, recommendations from other
consumers are becoming an increasingly important decision factor. In an atmosphere of heightening mistrust of some
companies and their advertising, online customer ratings and reviews are playing a growing role in the customer buying process

Despite consumer acceptance of such reviews, however, their quality and integrity can be in question.
As it turns out, even negative reviews can sometimes be surprisingly impactful. For one thing, although they can hurt a well-
known brand, they can create awareness about an unknown or overlooked one. They can also provide valued information

When consumers can better learn the advantages and disadvantages of products
through negative reviews, fewer product returns may result, saving retailers and producers money
 Dealing with
4 customer
complaints Given the potential downside of having an
unhappy customer, it’s critical that marketers deal
with
Some companies think they’re getting a sense of customer satisfaction by tallying negative experiences properly and promptly.
complaints, but studies show that even though customers are dissatisfied with their Although challenging, the following practices can
purchases about 25 percent of the time, only about 5 percent of dissatisfied help to recover customer goodwill, such as :
customers complain. The other 95 percent either feel complaining is not worth the
effort or don’t know how or to whom to complain. They just stop Buying. ● Set up a seven-day, 24-hour toll-free
hotline .
No matter how perfectly designed and implemented a marketing program is, ● Contact the complaining customer as
mistakes will happen. quickly as possible. .
The best thing a company can do—other than minimizing the chance of mistakes ● Identify the true source of customer
occurring in the first place—is make it easy for customers to complain. Suggestion dissatisfaction before seeking a solution.
forms, toll-free numbers, websites,apps, and e-mail addresses allow for quick, two- ● Accept responsibility for the customer’s
way communication. Enabling customers to provide feedback can not only help disappointment; do not shift the blame
address their complaints; it can also help the company improve its products and onto the customer.
services ● Resolve the complaint swiftly and to the
customer’s satisfaction, while taking into
account the costs of resolving the
complaint and the lifetime value of the
customer
 Emirates Airline

Emirates airline was the first company in the Middle East to use CRM software (KIS).

Customization CRM Emirates :

1. Multilingual check-in robots to cut travel time
2. Business model ingredients are a lean workforce comparable to a low-cost carrier and a flat organisational
structure that allows the airline to maintain low overhead costs.
3. Quality service and Brand image improving
4. Use Artificial intelligence as well as virtual reality and 3D exhibits set to transform the aviation sector
5. With a global appeal : Emirates targets passengers from various regions, offering a vast network of 101
destinations across six continents.
Emirates Airline

1. Product
Emirates offers an unmatched traveling experience with its cutting-edge aircraft, opulent cabin interiors, and
top-notch amenities to ensure the highest standards of comfort and safety for its passengers.

2. Price
A dynamic pricing strategy, balancing affordability with the perception of exclusivity, offers :
● different fare classes, allowing customers to choose the level of luxury and services they desire.
● competitive prices while maintaining its premium positioning.

1. Place
● Strategically positions itself as a global connecting point.
● Collaborates with partner airlines to extend its reach and offer customers a wider range of destinations.
 Emirates Airline

Emirates places its customers at the core of its marketing strategies By:
➢ understanding their needs and preferences
➢ delivers tailored experiences that exceed expectations.
➢ invests in advanced data analytics and customer feedback
mechanisms to gain insights and personalize offerings.
➢ My Emirates Pass campaign offers exclusive discounts and
benefits to its customers, enhancing their travel experiences and
fostering customer loyalty
 MANAGING CUSTOMER LIFETIME VALUE

1 2 3 4 5

The concept of Customer Building Creating Measure

customer lifetime value Customer customer customer
lifetime value and brand equity lifetime value loyalty by lifetime value
building trust
 THE CONCEPT OF CUSTOMER LIFETIME VALUE

The aim of customer relationship

management is to produce high
Customer lifetime value (CLV) customer lifetime value
reflects the monetary equivalent
of the value that customers will
create for the company during
their tenure with the company
CUSTOMER LIFETIME VALUE (CUSTOMER EQUITY)
AND BRAND EQUITY

The Customer The Brand Customer Equity and Brand

Equity Equity Equity
The Brand Equity perspective Despite the tendency of some companies to
The Customer Equity emphasizes strategic issues in focus on either customer equity or brand
perspective focuses on managing, creating, and equity, both types of equity matter. There are
bottom-line financial value leveraging brand awareness no brands without customers and no
and image customers without brand
 Building Customer Lifetime Value
Improving Customer Rewarding The Most
Service Profitable Customers
05 Thoughtful gestures such as birthday
Selecting and training employees to be
greetings, small gifts, or invitations to
knowledgeable and friendly increases
special sports or arts events can send them
the likelihood that customers’ shopping
a strong positive signal
questions will be answered
satisfactorily 01 04 Managing Unprofitable
Customers
Engaging Customer
Marketers can encourage unprofitable
customers to buy more or in larger
Seeking consumer advice can be an
quantities, forgo certain features or services,
effective way to engage consumers
or pay higher amounts or fees
with a brand and company
02 03 Enhancing The Growth
Potential
Sales from existing customers can be
increased with new offerings and
opportunities
 EMIRATES

● Improving Customer Services

Emirates has always maintained a strong focus on its customer by doing things differently
Its innovations have introduced many firsts for the aviation industry, and its practices, services, and
offerings have become competitive benchmarks.

● Engaging Customer
Emirates placed a strong focus on increasing customer satisfaction and customer-perceived value
by developing services that would give its customers the best travel experiences both on the ground
and in the air

● Rewarding The Most Profitable Customers

The airline also places a lot of importance on its customer relationship management. Emirates has a
highly successful loyalty program called Emirates Skywards, which has more than 23 million
members
 EMIRATES

● Managing Unprofitable Customers

Emirates extended its Skywards loyalty program to flydubai, a low-cost Dubai-based carrier
established in 2008 by the city’s government

● Enhancing The Growth Potential

The airline also places a lot of importance on its customer relationship management. Emirates has a
highly successful loyalty program called Emirates Skywards, which has more than 23 million members
 1
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CREATING CUSTOMER LOYALTY BY BUILDING
 EMIRATES

● Competence: Emirates Airlines is known for its high-quality service and its commitment to safety. The airline
has a good safety record and its staff are well-trained and experienced. This gives customers confidence that they
are in good hands when they fly with Emirates.

● Honesty: Emirates Airlines is honest and transparent in its dealings with customers. The airline is upfront about
its pricing and fees, and it does not make any false promises. This builds trust with customers and makes them
more likely to fly with the airline again in the future.

● Benevolence: Emirates Airlines is committed to helping its customers. The airline has a dedicated customer
service team that is available 24/7 to help with any problems that customers may experience. This shows that
Emirates cares about its customers and is willing to go the extra mile to help them.
MEASURING CUSTOMER LIFETIME VALUE

When measuring customer

Customer lifetime value lifetime value, it is important
calculations provide a to consider not only the
formal quantitative monetary value each
framework for planning customer is likely to directly
customer investment, and generate for the company but
they help marketers adopt also the strategic value this
customer will create by
a long-term perspective.
endorsing the company and
its offering to others
 EMIRATES

1. Average annual spend

Emirates tracks the average amount of money that each customer spends per year on flights, upgrades, and
other services. This information is used to identify customers who are high-value spenders.

2. Spending habits
Emirates tracks the spending habits of each customer, such as the types of flights they book, the cabin class they
prefer, and the add-ons they purchase. This information is used to target customers with marketing campaigns
that are relevant to their interests.

3. Loyalty status
Emirates has a loyalty program called Skywards, which rewards customers for their travel with the airline.
Customers who have a higher loyalty status are typically more valuable to the airline.
THANK
YOU